The rich and oil

Balzac89

Balzac89

Undercover Mod
desert dude said:
Economics is a tough task master. Price is set by balance of supply and demand. If there are no shortages, why would price be so high? The only way for something like this to happen is through a government granted monopoly of the oil industry, or through government regulation. Why are you so slap happy about doomsday?
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You have no idea how price mechanisms work nowadays.
 
Balzac89

Balzac89

Undercover Mod
desert dude said:
We don't have to wait for oil to get expensive, there is resentment now.

You really ought to keep up with the news, Canndo. A new technology, called "fracking", has made a LOT of previously unrecoverable oil suddenly available. Oil industry experts expect the US to be the biggest petroleum producer within a decade.

So, you think price fixing by the government is going to fix a supply shortage of oil, or anything else? Tell us how that magic works.
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The typical life of a single well is less than 3 years.



This is progress.
 
londonfog

londonfog

Well-Known Member
canndo said:
Let us suppose that circumstances fall in such a way that gasoline costs $16.00 a gallon. There are no true shortages, the price is simply the price you must pay in order to purchase gasoline. Further, let us assume that heating oil costs $10.00 a gallon.

Again, only the rich will be able to afford to casually drive from one poinit to another and in effect, a significant portion of your income must go only to your warmth and mobility. What will you do?

Will you pettition the government to help you? ask for subsidies or demand that the government artificialy drive down the price of gas?

Will you resent the rich? being that they are the only ones who now have an abundance of something you previously throught was granted to you?
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SunShot Initiative should have been more embraced by all..I would say
 
N

NoDrama

Well-Known Member
The US might become the worlds largest producer of petroleum, but it won't last since the wells are short lived and to get the same flows you have to exponentially expand your drilling. Its not like the old days where they drilled one hole with a rig and then pumped that well for the next 20 years, now they drill multiple holes from a single area, the whole oil drilling rig stands up and walks itself to the new location and they get about 3 years out of them before they go dry. Flow rates also wane as the well ages.

One good thing about oil drilling today, its very environmentally clean for the most part and is not difficult to turn an old well site back into useable crop land.
 
canndo

canndo

Well-Known Member
Antidisestablishmentarian said:
Us to be top oil producer by 2015

http://mobile.bloomberg.com/news/2013-11-12/u-s-nears-energy-independence-by-2035-on-shale-boom-iea-says.html

http://money.cnn.com/2013/11/12/news/economy/iea-oil-outlook/

http://uk.mobile.reuters.com/article/idUKBRE9AB0N920131112?irpc=932
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REad the articles closely, they take liberties with the term "oil", including lng in the mix.

Note also that production will never match domestic consumption - given that oil and likely lng are fungible, there is no guarantee that those products will stay in our borders but be sent to the highest bidder.
 
Antidisestablishmentarian

Antidisestablishmentarian

Well-Known Member
canndo said:
REad the articles closely, they take liberties with the term "oil", including lng in the mix.

Note also that production will never match domestic consumption - given that oil and likely lng are fungible, there is no guarantee that those products will stay in our borders but be sent to the highest bidder.
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Cool. You asked: Kindly show me where it says we are to be the largest petrolium producer in the next decade..

I showed you. Take what you will from it.

Edit: and while it does include natural gas, it includes it for everyone. I guess you would have to take that up with the IEA.
 
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